Which of the Following Statements Is True About the Racial

question 22

Multiple Choice

Which of the following statements is true about the racial wealth gap?

• A) Although there used to be a large wealth gap between White and Black Americans, the size of that gap is now shrinking.
• B) Because wealth is composed of many different asset types, it is impossible to accurately measure the size of a racial wealth gap.
• C) Policies that protect existing wealth are race-neutral and do not provide advantages for any particular racial group.
• D) The typical Black family today has less than a dime of wealth for every dollar of wealth owned by a typical White family.

---

Definitions:

Mortgage-Backed

Mortgage-backed refers to securities that are secured or backed by mortgage loans, allowing investors to receive payments derived from the principal and interest payments made by borrowers.

Money Market

The section of the financial market dealing with the lending and borrowing of short-term funds, including treasury bills, commercial paper, and certificates of deposit.

Repurchase Agreements

Short-term loans where a borrower sells securities to a lender with an agreement to buy them back at a higher price at a future date.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically used for the financing of payroll, accounts payable, and inventories.